From the example of the charts $BTC on the 1-minute and 1-day timeframes, it is clearly visible how the same asset can look completely different depending on the time scale.
1-minute chart (short-term trading, scalping)
On the 1-minute chart, a short-term upward trend is visible – the price is rising, EMA(9) and EMA(21) confirm the momentum, and RSI is in the neutral zone. On such a timeframe, traders can see quick fluctuations and open trades for a few minutes or hours. It is important to remember that such movements do not guarantee long-term growth, and the price can change direction sharply.
1-day chart (swing trading, long-term decisions)
On the 1-day chart, the situation is quite different – a downward trend after the local minimum of $76,606. BTC bounced up, but EMA(9) and EMA(21) still indicate weakness. RSI is in the 40-50 zone, which speaks of uncertainty – there are still no clear signals for a reversal, but sellers are losing momentum.
Main conclusions:
• On the 1-minute chart, it seems that Bitcoin is rising, and one might think that this is the perfect moment to buy.
• But the 1-day chart shows that this may only be a correction within a global downward trend.
• If you are scalping, the short-term trend can be used for quick trades.
• If you are working with a long-term perspective, it is worth waiting for confirmation of a reversal before entering the market.
Therefore, before drawing conclusions, it is always worth analyzing different timeframes to avoid false signals and make more balanced decisions!
